It includes the condition of Agricultural Insurance before the independence and after the independence and currently running insurance scheme in 2015-16.

1. AGRICULTURAL
INSURANCE
Presented By..
SATYAWAN RAMTEKE
BASW, II year Roll. no. : 36
Tata Institute Of Social Sciences,
Tuljapur

2. What is Agricultural Insurance ?
Insurance is the small help to protect farmers against
either the loss of their crops due to natural disasters, such as hail,
drought, and floods, or the loss of revenue due to declines in the
prices of agricultural commodities.

3. What is Crop Insurance ?
Crop insurance is an insurance arrangement aiming at
mitigating the financial losses suffered by the formers due to
damage and destruction of their crops as a result of various
production risks.
What is Livestock Insurance ?
Livestock insurance is a contract by which the Insurer
agrees to identify the insured against such loss or damage as he
may sustain by reasons of injury to or the death of livestock by
the happening of the perils specified.
OR
A contract to pay a certain sum of money on the death
of an animal from disease or accident.

4. Evolution of Crop Insurance
in India
Pre-Independence
In 1915 Shri. J.S. Chakravarthi of Mysore State, had proposed a
Rain Insurance Scheme for the farmers for drought.
His scheme was based on area approach.
He published a number of papers in the Mysore Economic Journal
enunciating the concept of Rainfall Insurance.
In 1920 Shri. Chakravarthi published a book titled “Agricultural
Insurance: Practical Scheme suited to Indian Conditions”.
States like Madras, Dewas, and Baroda, also made attempts to
introduce crop insurance relief in various forms, but with little
success.

5. Evolution of Crop Insurance
in India
Post-Independence
After the attainment of Independence in 1947, Crop Insurance
gradually started to find mention more often.
Minister of Food and Agriculture, Dr. Rajendra Prasad gave an
assurance that the government would examine the crop and cattle
insurance .
Special study was commissioned for this purpose in 1947-48.
In October 1965 the Government of India decided to introduce a Crop
Insurance Bill and a Model Scheme of Crop Insurance .
In 1970, the draft Bill and the Model Scheme were referred to an
Expert Committee headed by Dr. Dharm Narain.

6. Evolution of Crop Insurance in India
 First ever scheme on ‘Individual’ approach basis (1972 -
1984)
 Pilot Crop Insurance Scheme – PCIS (1979 – 1984)
 Comprehensive Crop Insurance Scheme – CCIS (1985 – 1999)
 Experimental Crop Insurance Scheme – ECIS (Rabi, 1997 –
1998)
 National Agricultural Insurance Scheme – NAIS (1999…..)
 Farm Income Insurance Scheme – FIIS
( Rabi 2003 – 04 season & Kharif 2004 – 05 season )
 Pilot Scheme on Seed Crop Insurance – PSSCI (2000)
 Rainfall based Insurance (Kharif 2004 )
 Weather based Insurance product (Rabi 2005 )

7. First ever scheme on ‘Individual’
approach basis (1972 - 1984)
The first crop insurance program was introduced in 1972-73 by the
'General Insurance' Department of Life Insurance Corporation of
India.
Later General Insurance Corporation of India took experimental
scheme.
This experimental scheme was based on "Individual Approach".
It continued upto 1978-79 and covered only 3110 farmers.
It was realized that crop insurance programs based on the individual
farm approach would not be viable and sustainable in this country.

8. Pilot Crop Insurance Scheme
PCIS (1979 – 1984)
Professor V. M. Dandekar, referred to as the “Father of Crop Insurance in India”,
suggested an alternate “Homogeneous Area approach” for crop insurance in
the mid-Seventies.
Based on this Area approach, the General Insurance Corporation of India (GIC)
introduced a Pilot Crop Insurance Scheme (PCIS) from 1979.
The scheme covered cereals, millets, oilseeds, cotton, potato, gram and barley.
The insurance Premium ranged from 5 to 10 per cent of the Sum Insured.
This PCIS ran till 1984-85 by which 13 States had participated.
The scheme covered 6.27 lakh farmers for a Premium of 1.97 crore against
Claims of 1.57 crore.

9. Comprehensive Crop Insurance
Scheme – CCIS (1985 – 1999)
CCIS was introduced in 1st April 1985 by the Government of India with the
active participation of State Governments.
The CCIS was implemented on Homogeneous Area approach and was linked to
short-term crop credit.
15 States and 2 (Union Territory) had participated in the CCIS from Kharif 1985
to Kharif 1999.
In this entire period, the Scheme covered 7.63 crore farmers under an area
of 12.76 crore hectares, for a Sum Insured of 24,949 crore at a premium
of 403.56 crore.
CCIS was eventually discontinued after Kharif 1999.
This scheme replaced by the “National Agriculture Insurance Scheme” (NAIS),
which is being continued till date.

10. Experimental Crop Insurance
Scheme ECIS (Rabi, 1997 –
1998)
Experimental Crop Insurance Scheme (ECIS) was introduced in Rabi
1997.
14 Districts of 5 States are involved in this scheme.
The Scheme was similar to CCIS.
ECIS for all small / marginal farmers with 100% subsidy on Premium.
The Scheme was discontinued after one season due to its many
administrative and financial difficulties.
During its one season, the ECIS covered 4,54,555 farmers for a Sum
Insured of 168.11 crore at a Premium of 2.84 crore against which the
Claims paid were 37.80 crore.

11. National Agricultural Insurance
Scheme NAIS (1999…..)
NAIS was introduced in the country from the rabi season of 1999-
2000.
Agricultural Insurance Company of India Ltd (AIC) was incorporated
to implementation of NAIS.
sugarcane, potato, cotton, ginger, onion, turmeric, chillies, coriander,
cumin, jute, tapioca, banana and pineapple, are covered under the
scheme.
The premium rates applicable on the sum insured are : Bajra and
oilseeds : 3.5 %, Other kharif crops : 2.5 %, Wheat : 1.5 %, Other rabi
crops : 2.0 %
Initially, only 9 states / UTs participated in the National Agricultural
Insurance Scheme.

12. Farm Income Insurance Scheme – FIIS
( Rabi 2003 – 04 season & Kharif 2004 – 05
season )
 the government introduced a pilot project, viz. Farm
Income Insurance Scheme (FIIS) during Rabi 2003-04
season.( farmers often fail to maintain their income level
due to fluctuations in market prices.)
 The objective of the scheme was, protect the income of
the farmer and reduce the government expenditure.
 FIIS based on 'homogeneous area' approach.
 The Scheme was implemented during 2 seasons only. In
all, the scheme covered 4.15 lakh farmers
 Collected premium was 28.5 crore and paid claims
was 28.75 crore.

13. Pilot Scheme on Seed Crop
Insurance – PSSCI (2000)
 PSSCI was introduced in Kharif 2000 season in 11 States.
 Objective to provide stability to the infrastructure State
owned Seed Corporations and State Farms
 Established by the State owned Seed Corporations and
State Farms, and to give a boost to the modern seed
industry by bringing it under scientific principles.
 Provide financial security & income stability to the Seed
Growers in the event of failure of seed crop.

14. OTHER AGRICULTURAL
INSURANCE SCHEMES
Farm Income Insurance
Livestock Insurance
Weather Based Crop Insurance / Rainfall
Insurance

15. PRESENT AGRICULTURAL INSURANCE
SCHEMES
2015-16
 National Agricultural Insurance Scheme
 Pradhan Mantri Fasal Bima Yojana
 Bio-Fuel Tree / Plant Insurance
 Cardamom Plant & Yield Insurance
 Potato Crop Insurance
 RulpWood Tree Insurance Policy
 Rainfall Insurance Scheme For Coffee (RISC)-
2011
 Rubber Plantation Insurance
 Varsha Bima / RainFall Insurance
 Weather Insurance (RABI)

16. Pradhan Mantri Fasal Bima Yojana

Launched by PM Narendra Modi on 18 Feb 2016.

Central and State government.

2% premium for kharip crops and 1.5% for rabbi crops.

For annual commercial and horticulture crops premium is 5%.

17. Accidental Insurance Scheme

This scheme was introduced by MH government.

Time period of scheme 1st Nov 2014 to 31st Oct 2015.

Farmer will get 50,000-2 lakh.

18. Pashudhan Bima Yojna
2015-16

Deal with New India Insurance Company

1st August to 15th August 2016 celebrated a awareness about the
livestock insurance.

1 Family – 1 Livestock Unit

Insurance for 1 year or 3 year

Insurance interest rate for 1 yr. 2.45 % and for 3 years 6.40 %
of the cost.

Subsidy, open 50%, BPL holders and backward classes it is 70%.

19.  Price of Animals – Depend on Quantity of Milk.
1 liter = 3000 Rs. For Cow
1 liter = 4000 Rs. For Buffalo
Insurance claim will be given when the animal dies within the
time period of the insurance. (death due to ill-ness, accident, fire,
thunder lighting, flood, earthquake, drought, or due to fights).
 Premium based on cost of animal.
 The cost of animal is decided by Farmer, Doctor and insurance
agent.

21. References…..
 Block Agricultural Office
 S. P. Jadhao (BAO) 9403695700
 Shaikh Sir ( Agricultural Assistance ) 9822367211
 Kore Sir ( Horticultural Department ) 9850400283
 Barade Sir ( Mandal Adhikari )
 Livestock Development Office
 Dr. A. N. Kulkarni (LDO) 9403385323
 Nandu Magar ( Co-Operative Bank )
 Agricultural Insurance Company of India Limited

22. Thank You…